GBP/USD drops to fresh session low ahead of key jobs report

The GBP/USD pair accelerated its rejection move from 50-day SMA resistance touched during early Asian session and has now dropped to a fresh session low. 

Currently hovering around 1.2360-65 region, repositioning of trading positions, ahead of a key event risk, seems to be the only reason collaborating to the pair's slide on Friday, in otherwise a dull pre-NFP trade and in absence of any fresh fundamental drivers from UK economic docket. 

Looking at the broader picture, the pair failed to clear an important resistance near 1.2430 region and snapped two consecutive days of winning streak, stalling its recovery trend from an important support near 1.2200. Hence, traders might have been inclined to lock-in some profits following an up-move of over 200-pips in just 3-trading session. 

Investors on Friday will remained focused on the much awaited monthly jobs report that would set the tone for greenback's near-term trajectory and eventually determine the pair's next leg of directional move. Other US economic releases - factory order and trade balance data, are likely to be overshadowed by the jobs report but might provide some impetus for short-term traders. 

Technical levels to watch

Weakness below 1.2350 level is likely to find support near 1.2335 area, which if broken has the potential to drag the pair below 1.2300 handle towards its next support near 1.2285-80 region. On the upside, any up-move above 1.2400 round figure mark might continue to confront strong hurdle near 1.2430 region (50-day SMA) above which the pair seems all set to head towards reclaiming 1.2500 psychological mark.